Tariff uncertainty threatens to raise drug prices and stall medical innovation, experts warn
Share this @internewscast.com

LOS ANGELES (KABC) — In this time of fluctuating tariff talks, many are concerned and confused about what it will cost us.

President Donald Trump put most of them on hold for now, but when it comes to paying for medications, tariffs could have some long-term consequences.

At various pharmacies, customer uncertainty is bringing worry especially for those already spending more than they can afford.

“One inhaler is $60 to $100 in order for me to get a breathing treatment,” said Lucky Goodrich of Los Angeles.

“Of course we get lots of calls, lots of inquiries and people want to know what’s going on,” said Sherri Cherman of Elements Pharmacy in Studio City.

Trump says he believes tariffs would drive drug makers to open manufacturing plants in the U.S., which would ultimately lower costs for Americans and create more jobs. Economists said the industry doesn’t work that way.

“It’s just completely different,” said Bill Padula, a scholar with the USC Schaeffer Center for Health Policy and Economics.

He said unlike other products, pharmaceutical prices are locked in with insurance companies at the start of every year.

“What pharmaceutical manufacturers may be in the position of is having to lower their price so that the price plus the tariff equals what health insurers will continue to expect as the cost of things,” he said.

The result is that drug companies will take the hit first.

But down the line, industry trade group Pharmaceutical Research and Manufacturers of America, estimated a proposed 25% tariff would boost drug prices by as much as 12.9%.

Experts say the raw ingredients for almost all medications are manufactured overseas, which means it could drive up cost even for drugs manufactured in the U.S.

“Even if there’s a 25% tariff on the drug itself being imported, the increased tariffs on active or raw ingredients that go into a drug could increase the total cost by 40%,” Padula said.

He added another potential consequence of drug makers making less profit means less money toward research and development for breakthrough treatments for cancer, Alzheimer’s and other diseases.

“So in the long run, Americans could pay by not having the availability of new innovative medications,” Padula said.

Is there a better solution? Padula said tax credits for drug makers have worked before. One example is the 1980s Orphan Drug Act which he said helped reduce costs and incentivize innovation.

“We saw instantaneous responses from the pharmaceutical industry trying to find ways to take existing drugs and create new indications for them,” he said.

But tax credit legislation on a federal level takes a very long time to pass, so Padula said local action would be faster.

“These credits could be deployed at the state level and incentivize manufacturers coming back to certain states,” Padula said.

At the cash register, Cherman said worry has prompted some customers to get as many prescriptions filled as possible, but she tells her customers change will be slow.

“I feel like there’s going to be a lot of negotiation between the drug industry and the government before we finally see what might happen,” she said.

Copyright © 2025 KABC Television, LLC. All rights reserved.

Share this @internewscast.com
You May Also Like
NYC mayoral candidates clash bitterly during final debate

Final NYC Mayoral Debate Sparks Heated Exchanges Among Candidates

NEW YORK (AP) — During the heated final debate in New York…
Alaska pilot seeks SCOTUS relief in case in which three beer cases led to forfeiture of $95k plane

Alaska Pilot Appeals to Supreme Court Over $95K Plane Forfeiture Stemming from Three Beer Cases

An 82-year-old bush pilot from Alaska is taking his legal battle to…
Man accused of killing teacher wife after wandering shirtless and warning of ‘too many cops’ nearby: police

Shirtless Man Arrested for Allegedly Killing Teacher Wife, Claims ‘Too Many Cops’ Were Close: Police Report

A Texas man has been taken into custody following allegations that he…
Five Points businesses recovering after break-ins

Five Points Businesses Rebound Following Recent Break-Ins

Pattaya Thai is among several businesses in Five Points grappling with the…
Former New York state trooper sentenced to 6 months in prison after faking his own shooting: 'disgraceful'

Ex-New York Trooper Jailed for Six Months Over Fake Shooting Incident: Described as ‘Disgraceful

A former New York state trooper received a six-month jail sentence on…
Porta-potty peep scheme busted as man faces nearly 100 charges for filming students: police

Man Arrested for Allegedly Filming Students in Porta-Potties, Faces Extensive List of Charges

An Iowa resident is facing close to 100 charges after authorities discovered…
Chicago crash: 1 arrested in attempt to hit federal agents in vehicle near Ogden, 26th Street in Little Village, Cicero police say

Chicago Incident: Suspect Arrested in Alleged Vehicle Assault on Federal Agents in Little Village, Cicero

CHICAGO — In a dramatic incident on Chicago’s Southwest Side on Wednesday…
Vladimir Kramnik: Former world chess champion may face discipline for treatment of Daniel Naroditsky

Controversy Strikes: Vladimir Kramnik’s Conduct Under Scrutiny in Daniel Naroditsky Dispute

On Wednesday, the global chess governing authority announced it is contemplating disciplinary…
NYC socialist mayoral candidate Mamdani's 911 plan called 'worst idea' by former NYPD

Former NYPD Criticizes NYC Mayoral Candidate Mamdani’s Controversial 911 Reform Proposal

Mamdani calls for ‘reorganizing’ NYPD 911 response In a mayoral debate held…
Charlotte man charged with Iryna Zarutska’s killing could face death penalty

Charlotte Resident Faces Potential Death Penalty in Connection with Iryna Zarutska’s Murder

The heart-wrenching case of Iryna Zarutska’s murder has taken a significant legal…
How inflatable costumes ballooned at anti-Trump rallies due to a Portland protester's frog outfit

Inflatable Costumes Take Center Stage at Anti-Trump Rallies, Inspired by Portland Protester’s Frog Attire

In Portland, Oregon, a unique form of protest unfolded when Seth Todd…
Bernie-Endorsed Maine Senate Candidate's Campaign Implodes As Dems in Disarray Hits Fever Pitch

Maine Democrats Face Backlash Over Controversial Policies: A Step Too Far?

In a surprising twist from Maine, Democratic U.S. Senate candidate Graham Platner…